Accounting Policies of Mathew Easow Research Securities Ltd. Company

Mar 31, 2024

3 Material accounting policies

A) Basis of preparation

The Financial Statements have been prepared under the historical cost convention on accrual basis excepting certain financial instruments which are
measured in terms of relevant Ind AS at fair value/ amortized costs at the end of each reporting period.

Historical cost convention is generally based on the fair value of the consideration given in exchange for goods and services.

As the operating cycle cannot be identified in normal course, the same has been assumed to have duration of 12 months. All Assets and Liabilities have
been classified as current or non-current as per the operating cycle and other criteria set out in Ind AS 1 ‘Presentation of Financial Statements’ and
Schedule III to the Companies Act, 2013. Having regard to the nature of business being carried out by the Company, the Company has determined its
operating cycle as twelve months for the purpose of current and non-current classification.

The Financial Statements are presented in Rupees in Lakhs and all values are rounded off to the nearest two decimal places as permitted by Schedule - III
of the Companies Act, 2013 except otherwise stated.

B) Functional and presentation currency

These financial statements are presented in Indian Rupees (INR), which is also the Company’s functional currency. All amounts presented in Indian
Rupees have been rounded-off to two decimal places to the nearest lacs except share data or as otherwise stated.

C) Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date under current market conditions.

The Company categorizes assets and liabilities measured at fair value into one of three levels depending on the ability to observe inputs employed for such
measurement:

Level 1: Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Inputs other than quoted prices included within level 1 that are observable either directly or indirectly for the asset or liability
Level 3: Inputs for the asset or liability which are not based on observable market data (unobservable inputs)

The company has an established control framework with respect to the measurement of fair values. This includes a finance team that has overall
responsibility for overseeing all significant fair value measurements who regularly review significant unobservable inputs, valuation adjustments and fair
value hierarchy under which the valuation should be classified.

D) Property, plant and equipment

Property, Plant and Equipment are stated at cost of acquisition, construction and subsequent improvements thereto less accumulated depreciation and
impairment losses, if any. For this purpose cost include deemed cost on the date of transition and comprises purchase price of assets or its construction cost
including duties and taxes, inward freight and other expenses incidental to acquisition or installation and any cost directly attributable to bring the asset
into the location and condition necessary for it to be capable of operating in the manner intended for its use.

Parts of an item of PPE having different useful lives and material value and subsequent expenditure on Property, Plant and Equipment arising on account
of capital improvement or other factors are accounted for as separate components.

The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future
economic benefits embodied within the part will flow to the Company and its cost can be measured reliably. The costs of the day-to-day servicing of
property, plant and equipment are recognised in the income statement when incurred.

Depreciation and Amortization

Depreciation on PPE except as stated below, is provided as per Schedule II of the Companies Act, 2013 on written down value method in respect of Plant
and Equipments and Office Equipments at all location of the Company.

Depreciation on Property, Plant and Equipments commences when the assets are ready fortheir intended use. Based on above, the useful lives as estimated
for other assets considered for depreciation are as follows:

Right-of-use assets, if any are intended to be depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful
life of the underlying asset.

Depreciation methods, useful lives, residual values are reviewed and adjusted as appropriate, at each reporting date.

E) Intangible assets

Intangible assets are stated at cost comprising of purchase price inclusive of duties and taxes less accumulated amount of amortization and impairment
losses. Such assets, are amortised over the useful life using straight line method and assessed for impairment whenever there is an indication of the same.

Amortisation methods and useful lives are reviewed, and adjusted as appropriate, at each reporting date.

F) Derecognition of tangible and intangible assets

An item of PPE is de-recognised upon disposal or when no future economic benefits are expected to arise from its use or disposal. Gain or loss arising on
the disposal or retirement of an item of PPE is determined as the difference between the sales proceeds and the carrying amount of the asset and is
recognised in the Statement of Profit and Loss.

G) Leases

The Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to
control the use ofan identified asset for a period oftime in exchange for consideration. To assess whether a contract conveys the right to control the use of
an identified asset, the Company assesses whether:

(i) the contract involves the use of an identified asset

(ii) the Company has substantially all of the economic benefits from use of the asset through the period of the lease and

(iii) the Company has the right to direct the use of the asset.

At the date of commencement of the lease, the Company recognizes a right-of-use asset (“ROU”) and a corresponding lease liability for all lease
arrangements, except for leases with a term of twelve months or less (short-term leases)and low value leases. Forthese short-term and low value leases, the
Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease.

Certain lease arrangements includes the options to extend or terminate the lease before the end ofthe lease term. ROU assets and lease liabilities include
these options considered for arriving at ROU and lease liability when it is reasonably certain that they will be exercised.

The lease liability is initially measured at amortized cost at the present value of the future lease payments.The lease payments are discounted using the
interest rate implicit in the lease or, ifnot readily determinable, using the incremental borrowing rates ofthese leases. Lease liabilities are remeasured with
a corresponding adjustment to the related right of use asset if the Company changes its assessment, whether it will exercise an extension or a termination
option. Lease liability and ROU asset are separately presented in the Balance Sheet and lease payments are classified as financing cash flows. Lease
liability obligations is presented seperately under the head "Financial Liabilities".

The right-of-use assets are initially recognized at cost, which comprises the initial amount ofthe lease liability adjusted for any lease payments made at or
prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated
depreciation and impairment losses.

Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter ofthe lease term and useful life ofthe underlying
asset. Right of use assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may notbe
recoverable. For the purpose of impairment testing, the recoverable amount(i.e. the higher of the fair value less cost to sell and the value-in-use) is
determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases,
the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs.

H) Impairment of tangible and intangible assets

Tangible, Intangible and ROU assets are reviewed at each balance sheet date for impairment. In case events and circumstances indicate any impairment,
recoverable amount ofassets is determined. An impairment loss is recognized in the statement ofprofit and loss, whenever the carrying amount ofassets
either belonging to Cash Generating Unit (CGU) or otherwise exceeds recoverable amount. The recoverable amount is the higher of assets’ fair value less
cost ofdisposal and its value in use. In assessing value in use, the estimated future cash flows from the use ofthe assets are discounted to their present
value at appropriate rate.

Impairment losses recognized earlier may no longer exist or may have come down. Based on such assessment at each reporting period the impairment loss
is reversed and recognized in the Statement of Profit and Loss. In such cases the carrying amount of the asset is increased to the lower of its recoverable
amount and the carrying amount that have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years.

I) Financial assets and financial liabilities

Financial Assets and Financial Liabilities (financial instruments) are recognised when the Company becomes a party to the contractual provisions ofthe
instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of
financial assets and financial Liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted
from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the
acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in the Statement of Profit and Loss.

The financial assets and financial liabilities are classified as current ifthey are expected to be realised or settled within operating cycle ofthe company or
otherwise these are classified as non-current.

The classification of financial instruments whether to be measured at Amortized Cost, at Fair Value through Profit and Loss (FVTPL) or at Fair Value
through Other Comprehensive Income (FVTOCI) depends on the objective and contractual terms to which they relate. Classification of financial
instruments are determined on initial recognition.

(i) Cash and cash equivalents

All highly liquid financial instruments, which are readily convertible into determinable amounts of cash and which are subject to an insignificant risk of
change in value and are having original maturities of three months or less from the date of purchase, are considered as cash equivalents. Cash and cash
equivalents includes balances with banks which are unrestricted for withdrawal and usage.

(ii) Financial assets and financial liabilities measured at amortised cost

Financial Assets held within a business whose objective is to hold these assets in order to collect contractual cash flows and the contractual terms of the
financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding are measured
at amortized cost.

The above Financial Assets and Financial Liabilities subsequent to initial recognition are measured at amortized cost using Effective Interest Rate (EIR)
method.

The effective interest rate is the rate that discounts estimated future cash payments or receipts (including all fees and points paid or received, transaction
costs and other premiums or discounts) through the expected life of the Financial Asset or Financial Liabilityto the gross carrying amount of the financial
asset or to the amortised cost of financial liability, or, where appropriate, a shorter period, to the net carrying amount on initial recognition.

(iii) Financial asset at fair value through other comprehensive income (i.e. FVTOCI)

Financial assets are measured at fair value through other comprehensive income if these financial assets are held within a business whose objective is
achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to
cash flows that are solely payments of principal and interest on the principal amount outstanding. Subsequent to initial recognition, they are measured at
fair value and changes therein are recognised directly in other comprehensive income.

(iv) Forthe purpose of para (ii) and (iii) above, principal is the fair value of the financial asset at initial recognition and interest consists of consideration for the
time value of money and associated credit risk.

(v) Financial assets or liabilities at Fair value through profit or loss

Financial Instruments which does not meet the criteria of amortised cost or fair value through other comprehensive income are classified as Fair Value
through Profit or loss. These are recognised at fair value and changes therein are recognized in the statement of profit and loss.

(vi) Impairment of financial assets

A financial asset is assessed for impairment at each balance sheet date. A financial asset is considered to be impaired if objective evidence indicates that
one or more events have had a negative effect on the estimated future cash flows of that asset.

The company measures the loss allowance for a financial asset at an amount equal to the lifetime expected credit losses if the credit risk on that financial
instrument has increased significantly since initial recognition. If the credit risk on a financial instrument has not increased significantly since initial
recognition, the company measures the loss allowance for that financial instrument at an amount equal to 12-month expected credit losses.

However, for loans and advances or contract assets that result in relation to revenue from contracts with customers, the company measures the loss
allowance at an amount equal to lifetime expected credit losses.

(vii) Derecognition of financial instruments

The Company derecognizes a financial asset or a group of financial assets when the contractual rights to the cash flows from the asset expire, or when it
transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

On derecognition of a financial asset (except for equity instruments designated as FVTOCI), the difference between the asset’s carrying amount and the
sum of the consideration received and receivable are recognized in statement of profit and loss.

On derecognition of assets measured at FVTOCI the cumulative gain or loss previously recognised in other comprehensive income is reclassified from
equity to profit or loss as a reclassification adjustment.

Financial liabilities are derecognized if the Company’s obligations specified in the contract expire or are discharged or cancelled. The difference between
the carrying amount of the financial liability derecognized and the consideration paid and payable is recognized in Statement of Profit and Loss.

J) Equity share capital

An equity instrument is a contract that evidences residual interest in the assets of the company after deducting all of its liabilities. Par value of the equity
shares is recorded as share capital and the amount received in excess of par value is classified as Securities Premium.

Costs directly attributable to the issue of ordinary shares are recognised as a deduction from equity, net of any tax effects.

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Mar 31, 2015

A. The financial statements have been prepared under historical cost convention from books of accounts maintained on an accrual basis (unless otherwise stated hereinafter) in conformity with accounting principles generally accepted in India and comply with the Accounting Standards issued by the Institute of Chartered Accountants of India and referred to Sec 129 & 133 of the Companies Act, 2013, of India. The accounting policies applied by the company are consistent with those used in previous year.

B. The Company is registered as a Non-Banking Financial (Non-Deposit Accepting) Company with the Reserve Bank of India vide Registration no.: 05.02088 dated 06.05.1998.

C. INCOME RECOGNITION is based on recognized accounting principles and as per Accounting Standard-9 issued by Institute of Chartered Accountants of India. Further, interest Income or any other charges on NPA are recognized only when they are actually realized.

D. RESERVE FUND: 20% of profits are transferred to Reserve Fund created u/s 45IC of the Reserve Bank of India Act, 1934.

E. FIXED ASSETS are stated at original cost of acquisition (including related incidental expenses) reduced by depreciation.

F. DEPRECIATION has been provided under Straight Line Method based on life assigned to each asset in accordance with Schedule II of the Companies Act, 2013.

G. INVENTORIES: Inventories being shares and securities are valued in the following manner:

a. Quoted shares and securities are valued at cost or market value whichever is lower.

b. Unquoted shares and securities are valued at cost.

H. PROVISIONS:

a. PROVISIONS IN ACCORDANCE WITH NON-BANKING FINANCIAL (NON-SYSTEMICALLY IMPORTANT NON-BANKING FINANCIAL (NON-DEPOSIT ACCEPTING OR HOLDING) COMPANIES PRUDENTIAL NORMS (RESERVE BANK) DIRECTIONS, 2015:

1. The Company has made 100% provision on Doubtful Assets to the extent to which the advance is not covered by the realizable value of the security to which the company has a valid recourse.

2. The Company has made a general provision of 10% of total outstanding Sub-standard assets.

3. The Company has made Contingent Provisions on Standard Assets @ 0.25% on Standard Assets.

b. PROVISION FOR TAXES: Provision for the current tax is based on tax liability computed in accordance with relevant tax rates and tax laws. Provision on deferred tax is made for all timing differences arising between taxable incomes and accounting income at rates that have been enacted or substantively enacted as of the Balance Sheet date. The tax expense for the year, comprising of the current tax and deferred tax is included in determining the net profit/loss for the year.

I. CONTINGENT LIABILITIES not provided for in respect of

J. Authorized share capital of the company was resolved to increase from Rs. 18 Crore to Rs. 74 Crore by creation of 5.60 Crore new equity shares of Rs. 10/- each at the Annual General Meeting of the company held on 29th September, 2014. The Board of Directors of the company had decided not to implement the said resolution and as such did not file the notice of increase in authorized share capital. Estimated filing fee amounting to Rs. 44 Lac has neither been provided for nor charged to Statement of Profit and Loss. In the circumstances, Authorized capital of the company has remained unchanged at Rs. 18 Crore (refer Note - 1).

K. As the Company has no activities other than those of an Non-Banking Financial Company, the segment reporting under Accounting Standard 17 – "Segment Reporting" is not applicable. The Company does not have any reportable geographical segment.

L. There is no liability towards Gratuity, leave pay, PF, ESI and/or any other type of retirement benefits. Hence, the requirements prescribed under Accounting Standard-15 have not been complied.

M. Separate disclosures for the amount due to Small Scale Industrial undertakings under the head Current Liabilities/ Creditors could not be made as the Company does not possess the requisite information.

N. The Micro, Small and Medium Enterprises Development Act, 2006 mandates disclosure related to payment and accrual of interest on delayed payments to suppliers classified as Micro, Small and Medium Enterprises under the Act. The Company has not received intimation from any of its suppliers regarding the status of their registration under the said Act and hence separate disclosures could not be made.

O. Information given in accordance with the requirements of Accounting Standard-18 on Related Party Disclosures issued by Institute of Chartered Accountants of India:

P. Previous year's figures have been regrouped/rearranged where necessary to conform to this years, classification.-

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Mar 31, 2014

A. The Financial Statements have been prepared in accordance with applicable Accounting Standards and as per relevant presentation requirements of the Companies Act, 1956. The Financial Statements have been prepared according to the double entry system of accounting and on accrual basis except expenditure on gratuity, leave pay and Bonus etc. which are accounted for as and when actual payments are made.

B. The Company is registered as a Non-Banking Financial (Non-Deposit Accepting) Company with the Reserve Bank of India vide Registration no.: 05.02088 dated 06.05.1998.

C. INCOME RECOGNITION is based on recognised accounting principles and as per Accounting Standard-9 issued by Institute of Chartered Accountants of India. Further, interest Income or any other charges on NPA are recognised only when they are actually realised.

D. RESERVE FUND: Earlier, the Company was of the view that the requirement of transfer of 20% profit to Reserve Fund created u/s 45IC of the Reserve Bank of India Act, 1934 does not apply to Non-Banking Financial (Non-Deposit Accepting) Company. However, as a matter of abundant caution and on expert advice, the Company has now transferred Rs.8,12,011/- to Reserve Fund for the years 2009-10 to 2012-13. Henceforth, accordingly 20% profits shall be appropriated to Reserve Fund created u/s 45IC.

E. FIXED ASSETS are stated at original cost of acquisition (including related incidental expenses) reduced by depreciation.

F. Depreciation has been provided on pro-rata basis on the Straight Line Method at the rates and in the manner as provided in Schedule XIV to the Companies Act 1956.

G. INVENTORIES: Inventories being shares and securities are valued in the following manner:

a. Quoted shares and securities are valued at cost or market value whichever is lower.

b. Unquoted shares and securities are valued at cost.

H. PROVISIONS:

a. PROVISIONS FOR BAD AND DOUBTFUL DEBTS: The Company has made 100% provision on Doubtful Assets to the extent to which the advance is not covered by the realisable value of the security to which the Company has a valid recourse in accordance with Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007

b. CONTINGENT PROVISIONS ON STANDARD ASSETS: The Company has made Contingent Provisions on Standard Assets @ 0.25% on Standard Assets in accordance with Non-Banking Financial (Non- Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 as amended by Notification No. DNBS.223/ CGM(US)-2011 dated January 17, 2011.

c. PROVISION FOR TAXES: Provision for the current tax is based on tax liability computed in accordance with relevant tax rates and tax laws. Provision on deferred tax is made for all timing differences arising between taxable incomes and accounting income at rates that have been enacted or substantively enacted as of the Balance Sheet date. The tax expense for the year, comprising of the current tax and deferred tax is included in determining the net profit/loss for the year.

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Mar 31, 2013

A.The Finaceal Statement have been requuriment of the Companeis Act.1956, The Fnaceal Statement have been per relevent requriment of the Company System of Accounting and on accrual basis execpt on gratuit leve pay and Bonus Ets Which Are Account For as When actural Payment are made.

B. The Company is registed as a Non-Deposit Accepting Company With the Resever Bank of India.

c. fixed assets are Provided on net or Cost realized value and in accdance deprecition.

D Deprecation has Provied on Pro-rate Basis on the Straight Line Method at the retes and in the Manner as Proded in schedule.

E.INVENTORIES Inventories are Valued at Lower of Cost or net realized Value and in Accordance with guidelines issued by Reseve Bank of Indiia as applicable to NBFC

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Mar 31, 2012

A. The Financial Statements have been prepared in accordance with applicable Accounting Standards and as per relevant presentation requirements of the Companies Act' 1956 The Financial Statements have been prepared according to the double entry system of accounting and on accrual basis except expenditure on gratuity' leave pay and Bonus etc. which are accounted for as and when actual payments are made'

B. The Company is registered as a Non-Banking Financial (Non-Deposit Accepting) Company with the Reserve Bank of India.

C. FIXED ASSETS are stated at original cost of acquisition (including related incidental expenses) reduced by depreciation.

D. Depreciation has been provided on pro-rata basis on the Straight Line Method at the rates and in the manner as provided in Schedule XIV to the Companies Act 1956.

E. INVENTORIES: Inventories are valued at lower of cost or net realizable value and in accordance with guidelines issued by Reserve Bank of India as applicable to NBFC.

F. CONTINGENT PROVISIONS ON STANDARD ASSETS: The Company has made Contingent Provisions on Standard Assets @ 0 25% in accordance with Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions. 2007.

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Mar 31, 2011

A. The Financial Statements have been prepared in accordance with applicable Accounting Standards and as per relevant presentation requirements of the Companies Act, 1956. The Financial Statements have been prepared according to the double entry system of accounting and on accrual basis except expenditure on gratuity, leave pay and Bonus etc. which are accounted for as and when actual payments are made.

B. The Company is registered as a Non-Banking Financial (Non-Deposit Accepting) Company with the Reserve Bank of India.

C. FIXED ASSETS are stated at original cost of acquisition (including related incidental expenses) reduced by depreciation.

D. Depreciation has been provided on pro-rata basis on the Straight Line Method at the rates and in the manner as provided in Schedule XIV to the Companies Act 1956.

E. INVENTORIES: Inventories are valued at lower of cost or net realizable value and in accordance with guidelines issued by Reserve Bank of India as applicable to NBFC.

F. CONTINGENT PROVISIONS ON STANDARD ASSETS: The Company has made Contingent Provisions on Standard Assets @ 0.25% in accordance with Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007.

G. Segment reporting as per Accounting Standard-17 is not relevant as the entire operations of the Company relates to only one segment i.e. Capital and Financial Markets and also the company did not have any overseas operations during the year.

H. Information given in accordance with the requirements of Accounting Standard-18 on Related Party Disclosures issued by Institute of Chartered Accountants of India:

List of Related Parties Nature of Relationship

i. Beda Nand Choudhary Director

ii. Mathew Easow Fiscal Services Ltd Company under common management

Transaction with Related Parties

Nil.

I. There is no liability towards Gratuity, leave pay, PF, ESI and/or any other type of retirement benefits. Hence, the requirements prescribed under Accounting Standard-15 have not been complied.

J. Separate disclosures for the amount due to Small Scale Industrial undertakings under the head Current Liabilities/ Creditors could not be made as the Company does not posses the requisite information.

K. The Micro, Small and Medium Enterprises Development Act, 2006 mandates disclosure related to payment and accrual of interest on delayed payments to suppliers classified as Micro, Small and Medium Enterprises under the Act. The Company has not received intimation from any of its suppliers regarding the status of their registration under the said Act and hence separate disclosures could not be made.

L. Previous year's figures have been regrouped/rearranged where necessary to conform to this years' classification.

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Mar 31, 2010

A. The Financial Statements have been prepared in accordance with applicable Accounting Standards and as pe relevant presentation requirements of the Companies Act, 1956. The Financial Statements have been prepared according to the double entry system of accounting and on accrual basis except expenditure on gratuity, leave pay and Bonus etc. which are accounted for as and when actual payments are made.

B. The Company is registered as a Non-Banking Financial Company with the Reserve Bank of India

C. FIXED ASSETS are stated at original cost of acquisition (including related incidental expenses) reduced by depreciation.

D. Depreciation has been provided on pro-rata basis on the Straight Line Method at the rates and in the manner as provided in Schedule XIV to the Companies Act, 1956.

E. INVENTORIES: Inventories are valued at lower of cost or net realizable value and in accordance with guidelines issued by Reserve Bank of India as applicable to NBFC.

F. INVESTMENTS: Investments are valued at cost less diminution in value of investments in accordance with Accounting Standard-13 issued by Institute of Chartered Accountants of India.